The euro has had a difficult second decade but the project has still had some important successes. The common currency is popular among the euro area's citizens, intra-European exchange rate instability has been removed and the ECB has successfully achieved its primary goal of price stability....

With a long-term projection of TFP growth of 0.2 per cent, a gradual decline in the work-age population and a static average workweek, we project a "baseline" average real GDP growth rate in the euro area of just 0.6 per cent over the next decade — even if the unemployment rate and investment...

One of the most famous and robust findings in international economics is that distance has a strong negative effect on trade. Bernard, Jensen, Redding, and Schott (2007) discuss how this can be decomposed into an effect due to the number of products and an effect due to average exports per...

The empirical finding that exporting firms are more productive on average than non-exporters has provoked a large theoretical literature based on models such as Melitz (2003), where more productive firms are more likely to overcome costs associated with trade. This paper provides a systematic...

Systemic risk refers to the risk of financial system breakdown due to linkagesbetween institutions. This risk cannot be assessed by looking at how individualinstitutions manage risks but instead requires a full understanding of how thesystem as a whole operates. At present, the data available to...

An important theme in modern research on productivity has been that technological progress may be embodied in capital in the sense that traditional measures of TFP growth reflect unmeasured improvements in the quality of capital inputs as well as pure disembodied technological progress. It is...

Output per worker can be expressed as a function of technological efficiency and of the capital-output ratio. Because technology is exogenous in the Solow model, all of the endogenous convergence dynamics take place through the adjustment of the capital-output ratio. This paper uses the...

Despite the widespread popularity of the Solow growth model, much of the recent empirical work based on the classic framework misrepresents a crucial feature of the model. Namely, the growth rate of technological progress, assumed to be exogenous in the Solow model, is often identified as being...

This paper develops a new technique for measuring the effect of computer usage on U.S. productivity growth. Standard National Income and Product Accounts (NIPA) measures of the computer capital stock, which are constructed by weighting past investments according to a schedule for economic...

This book focuses on the stabilization and growth problems of Ireland, an archetypal peripheral member of the EC. In part I, a supply-side neo-Keynesian macro-econometric model is developed, which captures the stylised features of the economy: high dependence on multinational FDI; an open labour...